Nvidia Plunges Nearly 10% To Sub-$100 Level, Leading Other Semiconductor Stocks Lower In Premarket: Why Their Chips Are Down
Portfolio Pulse from Shanthi Rexaline
Nvidia's stock plunged nearly 10% to below $100, leading a broader decline in semiconductor stocks in premarket trading. The drop is attributed to a rumored delay in Nvidia's next-gen Blackwell accelerators due to a design flaw. Other semiconductor stocks, including AMD, Intel, Arm Holdings, and ASML, also saw significant declines.
August 05, 2024 | 10:51 am
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NEGATIVE IMPACT
AMD's stock slipped 5.52% in premarket trading, following the broader decline in semiconductor stocks led by Nvidia.
AMD's decline is part of a broader sell-off in semiconductor stocks, influenced by Nvidia's significant drop and general market sentiment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Arm Holdings' stock plunged 10% as its owner SoftBank's Japan-listed shares fell sharply amid fears of a global recession and a stronger yen.
Arm Holdings' decline is influenced by the sharp drop in SoftBank's shares and broader market fears, rather than company-specific news.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
ASML's stock fell 4% in premarket trading, following the broader decline in semiconductor stocks led by Nvidia.
ASML's decline is part of the broader sell-off in semiconductor stocks, influenced by Nvidia's significant drop and general market sentiment.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
Intel's stock moved down 4.66% in premarket trading, influenced by weak results reported by the company and the broader decline in semiconductor stocks.
Intel's decline is influenced by its own weak results and the broader sell-off in semiconductor stocks, led by Nvidia's significant drop.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia's stock fell nearly 10% due to a rumored delay in its next-gen Blackwell accelerators caused by a design flaw. This delay could impact major customers like Microsoft, Meta, and Alphabet.
The rumored delay in Nvidia's Blackwell accelerators due to a design flaw is a significant negative development, especially given Nvidia's recent outperformance. This could impact major customers and lead to a short-term decline in stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
iShares Semiconductor ETF fell 6.14% in premarket trading, reflecting the broader decline in semiconductor stocks led by Nvidia.
The ETF's decline reflects the broader sell-off in semiconductor stocks, heavily influenced by Nvidia's significant drop and general market sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90